The first comprehensive guide to trading a unique class of options to manage risk and make smarter bets during volatile trading Providing savvy market players with a way to react quickly to event-driven opportunities and trends, exchange traded binary options are a unique type of derivative instrument offering fixed risk and reward. Available on four asset classes--stock index futures, commodity futures, Spot Forex and economic data releases--they are distinctly different from regular put/call options in that their pay-out structure offers only two potential outcomes, or settlement 0 or 100. The first guide focussing exclusively on this fast-growing sector of the options market, Trading Binary Options examines the key differences between regular options trading and binary options trading and describes how binary trading is done. It also gives you the lowdown on the most successful binary trading strategies and how and when they should be deployed.Outlines a rigorous approach to trading directionally around specific events, such as an earnings release, a shift in currencies, or a release of economic data Provides the first comprehensive coverage of an increasingly popular but poorly understood trading instrument Offers in-depth discussions of the six characteristics that distinguish binaries from other options and that make them such an attractive vehicle for hedging risk and improving returns
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Sometime ago I've made some Monte Carlo analysis of the whole concept of binary options, so it was interesting to see what people write about them in books. My finding was that I need at least 60% win rate in order to not go bankrupt. It's pretty hard to acheve especially on lower timeframes than daily and currency pairs who are even more just random, which isn't the case how retail folk is often trading. All odds for the house, like in the wild wild west of "forex" world.
On the book. It is about "normal" binary, interesting to know where to trade them, as every time I search fro binary, there are only countless bucket shops with "retail binaries". Stuff about strategies (not quantitative) is usual magic stuff promoted by brokers. Reasons why traders fail - right, they don't have the strategies, but most often they have lack of capital, which is the main reason even with best strategies.
And wanted more statistics, like, ex. Tasty Trade does with vanilla options, not some broad mostly meaningless stuff that we hear over century now. Go more quantitative finally! It has some (two or three to be correct - used normal distribution (not a case in the real world) and probability of change due to volatility, which is connected to nothing in some useful trading rules, - meaning,- just create your own), but that's too limited.